President Obama and the GOP yesterday brokered a deal that seeks to give clarity to taxpayers for 2011 and 2012. The deal also provides several new (or enhanced) tax provisions designed to stimulate the economy. Below is a snapshot of the parameters, which may be subject to alteration as the legislation is finalized and moved to a vote:

Extension of Bush era individual tax rates for 2011 and 2012

Extension of Bush era capital gains and qualified dividends for 2011 and 2012

Repeal of the itemized deductions phase out for high income taxpayers for 2011 and 2012

Repeal of the personal exemptions phase out for high income taxpayers for 2011 and 2012

Marriage penalty relief for 2011 and 2012

Extension of the $1,000 Child Tax Credit for 2011 and 2012 (previously scheduled to revert to $500 after 2010)

Reduction of Social Security tax (OASDI) for wage earners from 6.2% to 4.2%

100% bonus depreciation on qualifying purchases made in 2011

Extension of Research Tax Credit for 2010 and 1011

Additionally, the agreement sets forth a reenacted estate tax with a $5 million per person exclusion amount ($10 million per married couple) and maximum tax rate of 35% for 2011 and 2012. The repeal of the estate tax for 2010 remains, and there appears to be no momentum for a retroactive reinstatement.